It should be fixed, now on downloads section.
Craziest issue so far, but to sum up, I had a backup of the last step (I do on each small step or variation) and so it restored that level. If not by that backup, project would be stuck forever on this error. Sort of data corruption.
The candle issue has to do with hitting a candle with a knife. The collision event is supposed to destroy both the knife and the candle. Problem is that the engine sometimes think Simon is a knife, and destroys him. So, that function is deactivated for now (knife will pass through a candle like the boomerang/cross does).